About Dollar: Money Making Ideas
Why Financial Intelligence is Important
For any individual wishing to achieve his or her financial goals, and through them, his or her personal goals, an understanding of the importance of certain major financial topics is critical. At the most basic level, finance is the pursuit, accumulation and management of every dollar that an individual earns. When these dollars are used to invest, build or expand a business, pay taxes, or even improve one’s personal life, these are examples of finance having an impact on one’s life.
It is common for an individual to want to generate and accumulate personal wealth in terms of both money and assets. What is less common is for that same individual to have a firm grasp on the steps required to accomplish this goal. While one’s income is, for many, the primary source of incoming dollars, those individuals who are able to augment their income through investments – in both businesses and financial assets like stocks and bonds – find that they can grow their wealth. Once an individual crosses the threshold from being a net borrower (owing more than one takes in interest) to being a net lender (earning passive income), he or she is then able to accumulate wealth. It is only through an understanding of finance that this is possible.
Bridging Main Street with Wall Street
One of the greatest fallacies that is almost universally accepted, and which is fed by the mainstream financial media more and more, is that there is a meaningful divide between finance and real life; this is the Wall Street versus Main Street argument. In reality, if there is any distinction at all, it is of such little consequence that it ought to be abandoned. Consider such basic needs as car loans (possible because of the banking system), business loans (possible because of the capital markets), and home mortgages (possible on a large scale because of financial securitization). None of these is possible without a robust financial system.
Given the inextricable connection between Wall Street and Main Street, then, the health and success of one is directly tied to the orderly functioning of the other. Having an understanding of finance in this context becomes paramount when trying to navigate the complexities of modern society as one pursues the almighty dollar and attempts to build wealth. It is only after a basic understanding of the system is achieved that one can more thoroughly benefit from all that it has to offer and realize the full potential of the resources with which one is confronted.